Two beagle pups from an online advertisement which lists them as "pure bred".

Behind the procession of cute puppies in online classifieds and pet shop windows lies a far more sinister image of where these animals came from.

Last week, the same beagles – and a stream of other breeds – were traced back to another puppy farm, near Inverell, in Northern NSW, where conditions are so squalid and confined, breeding dogs live inside old portable water containers.

The new farm, observed by animal rights group Oscar's Law, appears to be in breach of animal welfare legislation. Not only are there an estimated 200 facilities like it across the state, they remain legal in NSW – with no renewal, registration or inspection procedures in place once backyard operators have secured a council permit.

"There is no hope for those animals ... that's the saddest part," said Oscar's Law founder Debra Tranter​. "In Victoria, all these dogs would now be safe. Under legislation, the RSPCA would be straight in there to seize them. But in NSW, there is a huge loophole and no end result."

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In recent months, the Victorian Government has moved to outlaw profit-driven puppy farms and flagged a range of strict restrictions on commercial breeders. And in March, the ACT Government followed suit by passing an Amendment Bill designed to stop breeding operations that exploit dogs and cats. Ms Tranter​ said: "I ask Premier Mike Baird why is NSW still allowing this cruelty to continue?"

Since 1993, Ms Tranter​ has exposed "hundreds" of puppy factories, all tucked away in remote country locations and housing hundreds of dogs that were cramped in cages or tight confinement, in much the same way as battery hens, for the sole purpose of breeding more puppies.

Not the full story: These Trading Post adverts were last week offering puppies, produced at the factory, for up to $1500 each.

The factory operators are so meticulous in covering their tracks, it is often impossible to link them to either their affiliated pet stores, or online classifieds.

Last week, The Sun-Herald discovered adverts on Trading Post for both the beagles and highly sought-after "red ruby Cavoodle​ pups", being sold for $1500 each, by a woman, in Inverell.

She confirmed the newborn poodle-cross-cavalier pups were ready to go May 20 and that some had poodle coats, some cavalier coats, adding it was a bit like a lucky dip.

She said buyers normally pay a bank deposit to hold the dog with the balance paid in full before they get shipped off through a mail order arrangement that sees them transported them by plane to Melbourne and WA. If they are bound for Sydney, a freighting company transports them by road.

The woman said it wasn't usual practice that buyers wanted to see the pets first, saying that because her property was so remote, meetings were best to take place in town.

According to the RSPCA's own guide to recognising a puppy factory, it states: "They don't allow you to visit and view the puppies at the breeding facility ... Instead they'll arrange to meet somewhere away from the puppy factory site."

The remote breeding mill that the woman has concealed for some time, was observed days earlier, by a team from Oscar's Law.

Ms Tranter​ said she identified at least three separate locations on the farm, where dogs were being held, referring to the area she witnessed as "lonely, miserable, conditions. It was a scene of filth and squalor."

Her reports demonstrate the factory appears to be in breach of multiple violations to the Animal Welfare Code of Practice – Breeding Dogs and Cats. Under disease management laws, animals cannot be kept on a dirt floor and should instead be housed on concrete so the area can be regularly hosed and cleaned.

"When you've got so many dogs in close confinement, the chances of cross-infection is extremely high...and you can't clean dirt," said Mrs Tranter​ who also pointed out: "There was no fresh water anywhere for these animals. Neither was there warm, soft bedding, as is required by law." In some areas, the living conditions were so appalling, cowering dogs were found housed inside portable water containers. Ms Tranter​ said: "Everyone will be rightly horrified by these images ... yet to put them in front of a magistrate as a cruelty case ... it probably wouldn't hold because a lawyer would argue the containers provide ample protection from rain and the elements.

"It's heartbreaking but the Act for the Prevention of Cruelty to Animals is so ambiguous, those water containers would most likely pass as 'adequate shelter'."

The RSPCA estimates that 95 per cent of dogs sold in pet stores were plucked from their parents in puppy factories. However, Mrs Tranter​ believes "times are changing".

"Thanks to public pressure, only 59 of a total 182 NSW pet shops now sell puppies or kittens," which also pointed to another "significant shift", which saw voters in March unexpectedly elect the Animal Justice Party into the NSW Upper House in March.

The RSPCA's New South Wales CEO, Steven Coleman said "traceability" of puppy farms was just one of many "varied" issues that the NSW Government needs to address urgently. "There are no legal requirements for these establishments to be registered – so we don't know where they are unless someone lodges a complaint. And we don't get complaints every day because they're not in people's faces. They're hiding in remote locations for a specific reason."

Mr Coleman said another "huge challenge" was eradicating the prospering online trade. "Pet shop animals are dwindling but at least when concerns are reported about animals in stores, we are straight onto it. With the internet, there is simply no filter."

On Friday, The Sun-Herald approached NSW Premier Mike Baird and asked if he thought present legislation surrounding puppy factories was adequate and whether he would review the laws, with a view to banning the farms. He declined to comment.

His Minister for Primary Industries, Niall Blair said: "The NSW Government is working hard to get rid of these few rogue operators."